Salary Sacrifice Pension Contributions

anonymousthegeek

Hi,

Last year I join my company's group personal pension scheme, via Salary Sacrifice. My employer matches my own contributions up to 5%.
Checking my pension statement online, I can see each month my "Employee's Payment" and my "Employer's Payment". However, it also shows I am getting an extra 20% tax relief on my "Employee's Payment" which I don't think is correct as I didn't pay tax/NI on that amount in the first place. I'm worried that by getting this relief, I'm going to have a bill at the end of each tax year to pay back that extra 20%?

I've phoned the pension provider, and they just said "Anything that comes in as an Employee Payment, will get 20% tax relief. No tax relief is given on Employer's Payments." and that I should speak to my employer if it's not right. My employer previously said it was all set up fine/as it should be. So I'm confused about what to do about this extra tax relief that I shouldn't be getting?!

Thanks in advance

molerat

With a salary sacrifice scheme there are no employee payments as the employer pays the whole amount. You need to clarify this with your employer, what does your payslip show ?

anonymousthegeek

Thanks for the reply.
I think that's the mistake, that it *should* all go in as an "employer payment" and then I wouldn't have this issue?

Payslip shows a Salary Sacrifice deduction, which is the amount I chose to contribute and is correct. It's definitely being subtracted before tax. It doesn't mention the matched contribution from my employer.

xylophone

I don't suppose this can have happened?
http://www.hmrc.gov.uk/manuals/eimanual/EIM42786.htm
http://www.hmrc.gov.uk/manuals/eimanual/EIM42780.htm

Best to ring HMRC and check out your situation?